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STMicroelectronics NV  (NYSE:STM) E10: $-0.14 (As of Sep. 2017)

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

STMicroelectronics NV's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.260. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $-0.14 for the trailing ten years ended in Sep. 2017.

As of today, STMicroelectronics NV's current stock price is $24.10. STMicroelectronics NV's E10 for the quarter that ended in Sep. 2017 was $-0.14. STMicroelectronics NV's Shiller PE Ratio of today is .

During the past 13 years, the highest Shiller PE Ratio of STMicroelectronics NV was 86.00. The lowest was 0.00. And the median was 22.97.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

STMicroelectronics NV Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 -0.10 -0.14 0.00 -0.22

STMicroelectronics NV Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.22 -0.22 -0.22 -0.14 -0.14

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today’s price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

For example, STMicroelectronics NV's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=0.26/246.819*246.819
=0.260

Current CPI (Sep. 2017) = 246.819.

STMicroelectronics NV Quarterly Data

per share eps CPI Adj_EPS
200712 0.020 210.036 0.024
200803 -0.090 213.528 -0.104
200806 -0.050 218.815 -0.056
200809 -0.320 218.783 -0.361
200812 -0.410 210.228 -0.481
200903 -0.620 212.709 -0.719
200906 -0.360 215.693 -0.412
200909 -0.230 215.969 -0.263
200912 -0.080 215.949 -0.091
201003 0.060 217.631 0.068
201006 0.390 217.965 0.442
201009 0.220 218.439 0.249
201012 0.240 219.179 0.270
201103 0.190 223.467 0.210
201106 0.460 225.722 0.503
201109 0.080 226.889 0.087
201112 -0.010 225.672 -0.011
201203 -0.200 229.392 -0.215
201206 -0.080 229.478 -0.086
201209 -0.540 231.407 -0.576
201212 -0.490 229.601 -0.527
201303 -0.190 232.773 -0.201
201306 -0.170 233.504 -0.180
201309 -0.160 234.149 -0.169
201312 -0.040 233.049 -0.042
201403 -0.030 236.293 -0.031
201406 0.040 238.343 0.041
201409 0.080 238.031 0.083
201412 0.040 234.812 0.042
201503 -0.030 236.119 -0.031
201506 0.040 238.638 0.041
201509 0.100 237.945 0.104
201512 0.000 236.525 0.000
201603 -0.050 238.132 -0.052
201606 0.030 241.018 0.031
201609 0.080 241.428 0.082
201612 0.130 241.432 0.133
201703 0.120 243.801 0.121
201706 0.120 244.955 0.121
201709 0.260 246.819 0.260

Add all the adjusted EPS together and divide 10 will get our e10.


Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

STMicroelectronics NV's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=24.10/-0.14
=

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

During the past 13 years, the highest Shiller P/E Ratio of STMicroelectronics NV was 86.00. The lowest was 0.00. And the median was 22.97.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


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